Rising Costs, Uncertainty Crimping Ontario Farm Business Growth

Rising costs and political and economic uncertainty are slowing Ontario farm business growth, according to the latest Farm Business Confidence Survey conducted by the Ontario Federation of Agriculture (OFA). 

The survey results show that compared to the previous year, Ontario farmers are focusing on maintaining the status quo and dialing back expansion and investment in their farm businesses. They’re also less confident in the sector’s outlook than they were a year ago, said an OFA release Thursday. 

The online survey of more than 1000 OFA farm members was conducted Dec. 2 - 20, 2024, after the election of new US President Donald Trump but before he officially took office. Since assuming office in January, Trump has threatened to slap 25% tariffs on US imports of Canadian goods, something that would negatively impact the Ontario ag industry. 

Much weaker commodity prices, including for corn and soybeans – the two biggest crops grown in the province – are also clouding the outlook. 

Survey respondents indicated little change in their top two policy priorities overall, once again ranking reducing farm taxes as the top issue affecting their business, followed by supporting farmers with energy costs. Rounding out the top three this year is protecting the right of property access, dropping last year’s third spot priority – encouraging Ontarians to buy local food – into fourth place. In Northern Ontario, compensation for wildlife damage continues to rank as a leading priority. 

“Feedback from our members is important to help guide the OFA’s priorities and activities, and these survey results confirm our ongoing focus on key issues like farm business profitability and rural infrastructure support,” OFA President Drew Spoelstra said in the release. “With the provincial election currently underway, it’s an ideal time for our members to bring these issues to the attention of candidates on the campaign trail and help shine a spotlight of agricultural and rural issues.” 

OFA will be releasing full survey results in a webinar to be hosted on Feb. 20 from noon to 1 pm by senior policy analyst Ben Lefort.  

The Ontario Federation of Agriculture represents 38,000 farm families across the province and serves as an advocate and voice for Ontario’s farmers.